50 CHAPTER 3


considerable provincial and local variability, with an inverse correlation between poverty and birth registration (Giese and Smith 2007). Another prob- lem with the South African application method as currently implemented and staffed is that the administration is too burdensome on the welfare offices (Rosa, Leatt, and Hall 2005). As noted earlier, Coady, Grosh, and Hoddinott (2004) found that, globally, targeting performance is less the result of the system type than of its implementation. However, some in South Africa argue that the means test should be eliminated because of the high monetary costs and other burdens it places on administrators and beneficiaries and the fact that these burdens are, at least in substantial part, responsible for under- coverage of the poor (Rosa, Leatt, and Hall 2005). If we add to these problems the likelihood that many of those not taking up the CSG are AIDS affected, a stronger case could be made for simplifying the application process. Most studies that attempt to surmise the effective- ness of social grants in reaching AIDS-affected households use evidence of the impact of grants on children in high-prevalence regions or the impact of pen- sions on children (see Chapters 6, 7, and 8 on education, health, and food consumption and nutrition), along with assumptions as to the covariance of AIDS and poverty and of AIDS-affected and fostering households. For example, Case, Hosegood, and Lund’s (2005) study in the one region in KwaZulu-Natal found mixed results, based largely on low take-up: only one-third of all age- eligible resident children had the grant accessed on their behalf; among the poorest households, only 50 percent were receiving the grant. Among those with the grant, however, it appears to be well targeted: recipient households were likely to have less educated and less employed parents as well as fewer assets and luxury items. This may reflect a self-targeting process in which better-off households for which the grant would make up a smaller proportion of household income find the time costs of applying and picking up the grant not worth the benefits. Children with deceased fathers were more likely to receive the grant, but the opposite was true for mothers; children living without mothers for all reasons were particularly at risk of not receiving the grant: 41 percent of children living with mothers received the grant versus 29 percent with nonresident mothers, 23 percent with deceased mothers, and 19 percent with mothers of unknown status (Case, Hosegood, and Lund 2005, 472–480). This points to an important targeting challenge: learning how to reach out to children living in households without mothers. Additional insight into how well the CSG and OAP reach AIDS-affected


households is provided by data from 1,428 households in the 2004 KwaZulu- Natal Income Dynamics Survey (KIDS).13 Using prime-age adult mortality between


13We thank Futoshi Yamauchi for assistance with analyzing the KIDS data.


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